Rm is the average of all the EPS growth rates of the Nifty 500 companies, expressed as a benchmark of Nifty 500. The EPS of the companies are expressed in terms of growth rate (R), where R = CAGR expressed to measure the EPS growth rate of each company in the Nifty 500. The financial statements of the selected Nifty 500 companies are used to calculate the relevant financial ratio. EPS, as a financial ratio, has been comprehensively used in this study. In this research paper, we identify the relationship between the sectoral constitution of the Nifty 500 population and the 50 top-performing companies under Nifty 500. This phenomenon is described in this research as an economic inertia.
This paper further concludes that revamping in economic fundamentals and political reforms is needed in addition to debt reduction in both financial institutions and non-financial enterprises with government guaranteed loans. This paper also suggests that the post-2008 financial crises accommodatiNG monetary policy pursued by Bank Negara should have been revered early in 2010. This research concludes that the excess borrowing and excess money supply caused an artificial growth rates and high public debt, budget deficit, and consumer debt ratio that puts burden on both the banking sector and government’s ability to meet its future financial obligations in the wake of shock to the global economy. An examination of available economic data by Bank Negara Malaysia and other independent economic monitoring agencies in addition to data available to the World Bank and IMF was utilized in the analyses. This research examines current growth in the Malaysian economy and the levels of debt and borrowing Malaysia incurred in the post-2008 financial crises.
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